GFT Daily Forex Market Commentary

[B]Forex Market Commentary for February 19, 2007 by Cornelius Luca[/B]

GFT Daily Forex Market Commentary

The dollar made little progress on Friday amid weak housing starts and U of Mich reports. The US markets are closed today, so trading should be light.

Euro/dollar

Euro/dollar marked time on Friday after nailing a 1 ½-month high at 1.3171. Expect sideways trading today.

Immediate support is at 1.3115. Next level is 1.3080. Below 1.3030 there is support at 1.2985 and 1.2940. There are two distant pivotal lows at 1.2882 and 1.2868.
Initial resistance remains at 1.3170. Above 1.3200, the euro/dollar should challenge the pivotal 1.3296 area.
Oscillators are rising.

NEAR-TERM: Mixed with downside bias
MEDIUM-TERM: Mixed
LONG-TERM: Bullish

Dollar/yen

Dollar/yen declined further early Friday but then recovered. A double top is in place and targets 117.80, so following some mild recovery, the weakness should continue.

Initial support is at 118.85. Dollar/yen then has support at 118.25 from another 50-point pivot that targets 117.75 and 118.75.
Immediate resistance is at 119.65 from a 50-pip pivot, which targets 120.15 and 119.15. Above 120.55 there is resistance at 121.05 from a 50-pip pivot, which targets 121.55 and 120.55.
Oscillators are falling.

NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish

Sterling/dollar

Sterling/dollar made slipped further on Friday. It should be mixed today
A break below the key 1.9445 level would signal a test of 1.9390.
Initial resistance is at 1.9550. The 1.9585 level must break if a further correction may ensue. Next level is 1.9635. Further resistance looms at 1.9676 from a pivot high.
Oscillators are mixed.

NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Mixed

Dollar/Swiss franc

One day after hitting a near 1 ½-month low, dollar/Swiss franc marked time. The downside seems limited in the short term, so some initial correction is likely. However, the pair formed a head-and-shoulder pattern, which targets 1.2190, so the medium-term outlook is negative.

Immediate support is now seen at 1.2330. Below 1.2290 there is support at 1.2220, but this level should not be seen.
Initial resistance is at 1.2370. Above 1.2425, resistance remains at 1.2510. There is a pivotal high level is 1.2570.

Oscillators are edging lower.

NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bullish